Automate method and system for creating tradeable hedge fund indicies
a hedge fund and automatic method technology, applied in the field of hedge funds, can solve the problems of difficult to construct a satisfactory index, the risk of affecting the performance of hedge funds, and the inability to meet the needs of hedge funds in the market,
Inactive Publication Date: 2012-10-25
ENVIRONMENTAL FINANCIAL PROD LLC
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- Application Information
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Benefits of technology
[0019]In accordance with preferred embodiments of the present invention, some of the problems associated measuring hedge fund performance are overcome. An automated method and system for creating tradable hedge fund indices is provided.
Problems solved by technology
The US Securities and Exchange Commission have deemed hedge funds inappropriate for the average investor.
However, hedge funds are also typically illiquid, heterogeneous and ephemeral, which makes it hard to construct a satisfactory index.
Non-investable indices are representative, but, due to various biases, their quoted returns may not be available in practice.
Investable indices achieve liquidity at the expense of limited representativeness.
Comparisons of hedge fund indexes have limitations because hedge fund indices have volatility and other material characteristics that may differ from a particular hedge fund.
Because of these differences, many hedge fund indexes currently known in the art cannot not be relied upon as an accurate measure of calculation or comparison for hedge funds.
However, none of these attempts solve all of the problems associated with creating and trading hedge fund indices.
Method used
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Exemplary Hedge Fund Evaluation System
[0030]A “hedge fund” is typically a private investment fund which may invest in a diverse range of assets and may employ a variety of investment strategies to maintain a hedged portfolio intended to protect the fund's investors from downturns in the market while maximizing returns on market upswings. Hedge funds are distinct other types of traditional investment portfolios. As a class, hedge funds typically undertake a wider range of investment and trading activities than traditional long-only investment funds (e.g., mutual funds, individual retirement accounts, investment accounts, etc.) and invest in a broader range of assets, including equities, bonds and / or commodities, etc.
[0031]FIG. 1 is a block diagram illustrating an exemplary tradable hedge fund index creation system 10. The exemplary tradable hedge fund index creation system 10 includes, but is not limited to, one or more target network devices 12, 14, 16 (only three of which are illus...
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An automated method and system for creating tradable hedge fund indices. One or more sets of hedge fund trading information is obtained on a application on a target device. The application creates one or more sets of tradable indices representing hedge fund performance from the received one or more sets of hedge fund trading information. The application displays the created one or more sets of tradable hedge fund indices in one more windows on a multi-windowed graphical user interface (GUI) The one or more sets of tradable hedge fund indices include, but are not limited to, equal weighted, asset weighted and / or aggregated hybrid tradable indices.
Description
FIELD OF THE INVENTION[0001]This invention relates to hedge funds. More specifically, it relates to an automated method and system for creating tradable hedge fund indices.BACKGROUND OF THE INVENTION[0002]A “hedge fund” is an alternative investment that is designed to protect investment portfolios from market uncertainty, while generating positive returns in both up and down markets. A hedge fund is typically a private investment fund which may invest in a diverse range of assets and may employ a variety of investment strategies to maintain a hedged portfolio intended to protect the fund's investors from downturns in the market while maximizing returns on market upswings.[0003]Hedge funds are distinct from mutual funds, individual retirement and investment accounts, and other types of traditional investment portfolios in a number of ways. As a class, hedge funds undertake a wider range of investment and trading activities than traditional long-only investment funds, and invest in a ...
Claims
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Login to View More IPC IPC(8): G06Q40/00
CPCG06Q40/04
Inventor SANDOR, RICHARD L.KANAKASABAI, MURALICLARK, NATHAN J.MARQUES, RAFAEL L.
Owner ENVIRONMENTAL FINANCIAL PROD LLC